Ms. Ibukunoluwa Odegbaike is the Managing Director of Guaranty Trust Bank, East Africa. Ms. Odegbaike has over 19 years banking experience spanning operations and sales and marketing.

Ms. Odegbaike is involved in the overall management of the bank’s day-to-day operations.

Before her appointment to her current role, Ms. Ibukunoluwa held various positions at Guaranty Trust Bank Plc, Nigeria. She joined the Bank in 1996 as an officer in Transactional Services Group of the Bank. Subsequently, she headed the Bank’s Private Banking Group in charge of portfolio management of the high net worth individuals of the Bank.

Before joining Guaranty Trust Bank (Kenya) Limited, she was the Head of Retail Banking, in charge of developing, executing and managing both the financial inclusion and retail strategy and tactical business plan of the Bank. This includes target market selection, customer and product propositions within the broad framework of the Bank’s strategy.

She holds a Bachelor of Science degree in Biology from University of Lagos, Nigeria and has attended several senior management courses including the INSEAD high performance management programme and Cranfield executive leadership programme.

KBA CEO CHAT - Digital Innovation

Good morning everybody welcome to this morning's ''My Chat with a Bank CEO'" session

Chat Admin

Goodmorning Nakhanu, welcome to the chat!

Chat Admin

Our topic this morning is Digital Innovation and Banking and our host this morning is Mr. David Thuku, the CEO of Family Bank

Chat Admin

Glad you could all join us. Happy to see a full house

Chat Admin

As we await the official start of the chat at 10am, please take a minute to update your profiles and upload a profile picture

Chat Admin

Always great to know who have on board

Chat Admin

Judy, Michael, Muendo and Sam Kerosi, karibuni sana

Chat Admin

I see Margaret, Bev, Becky, Peter, Elizabeth and Erick Karani in the house. Karibuni!

Margaret Ngenye

Thank you. Ready to learn

Chat Admin

We welcome you to begin posting your questions and comments on the topic of Digital Innovation and Banking we await the official start at 10am

nuru mugambi

good morning everyone

Chat Admin

Good morning Nuru! Glad you could join the chat

nuru mugambi

im looking forward to the conversation this morning

Erick Karani

Thanks. Eager to learn more!

SAMUEL WAINAINA

ready to learn something from Mr. Thuku

muendo kilonzo

Hello Mr. Thuku. Kindly confirm your presence.

Sam Kerosi

What are some of the biggest impediments to digital innovation in Kenya, specifially in the banking sector?

THOMAS MURIITHI

good morning ceo

Sam Kerosi

In your opinion, What technological business models will drive the biggest changes in the industry over the next 2-5 years?

David Thuku

Jambo and welcome everybody! Im looking forward to interacting with all of you on this very exciting topic!

David Thuku

Muendo...I confirm Im 'digitally' present!

Sam Kerosi

Mr. CEO could we define what really Digital Innovation is

Peter Kairu

Good morning to all

Becky Genga

Good morning, glad to be here.

Nakhanu ___

Good morning

David Thuku

As we get into today's topic of digital innovation, I would like to start by congratulating the banking industry and bank customers for their win at the Emerging Payments Awards that was held last night in London...we WON as the best innovation for PesaLink which was recently introduced by the industry as the first real-time interbank payments system. So congratulations everyone!

David Thuku

This session is important because I hope we can help demystify digital innovation. #

Margaret Ngenye

Congrats to you too Bwana CEO

Judy Kaguchia

Hello guys, glad to be here!

Conrad Karume

Good morning everyone

David Thuku

Thank you very much Margaret

Peter Kairu

My question to Mr CEO is What technologies, business models, and trends will drive the biggest changes in your industry over the next two years?

Cynthia Njeru

Good morning to all

David Thuku

Simply put, innovation is basically the application of better solutions to meet emerging and unarticulated needs. So when you introduce digital into it, its basically introducing digital technology into innovation.

Cynthia Njeru

Do you have financial advisers in your team? Can I come and get advice for free on how to invest my money?

Judy Kaguchia

Hello Dr. Thuku, how are you this morning? My question to you is: Has digital innovation changed how you do your everyday business? How are you making life easier for your customers who are very digital savvy?

David Thuku

When you introduce banking into the discussion, you then have the concept of intermediaries so the topic of today then becomes, using digital technology to meet the emerging and unarticulated needs of bank customers and society.

David Thuku

Thank you Sam for raising very important questions...

JEREMIAH NDALANA

Hi, Dr. Thuku?. With m-banking, internet banking and banking apps being incorporated by the majority of the major East African banks the challenge has now become how to remain competitive in a crowded marketplace?

Allen Kambuni

Good Morning Dr. Thuku. I hope you are well. Digital transformation is huge in today's world and has revolutionized industries such as transport and hospitality. Do you believe that there is a chance banking can achieve such levels of digital prominence within our regulatory environment? What role is Family Bank playing in ensuring the regulatory climate is transformed to accommodate this new trend?

David Thuku

There are numerous impediments to digital innovation, but the biggest of them perhaps is the mindsets of players. The human tendency to want to maintain status quo is actually the biggest challenge. Within the banking industry, the need to balance risk and customer centricity has in a way made banking seem to lag behind their customers.

Becky Genga

Hello Dr. Thuku. Has digital innovation affected the foot fall for Family Bank and are you viewing this as a good or bad thing?

David Thuku

Good morning Peter...In my view, over the next two years the biggest technology will still be mobile technology, which basically now has taken center stage in the lives of customers -- in everything that they do. The universality of Internet of Things, will continue to dominate the narrative.

Derrick Njoroge

Good Morning Dr. Thuku. Mastercard has recently launched a feature where you can take a selfie and the app sends a notification to confirm your identity. What new digital innovations like this is FBL introducing to the Kenyan market?

David Thuku

Thank you Cynthia for banking with us. Yes we welcome you drop us an email at customerservice@familybank.co.ke or reach us on Facebook or Twitter and we will assist.

David Thuku

Hello Judy and good morning to you too.

David Thuku

Indeed digital innovation has changed the way we do things; especially over the last couple of years. Our interaction with customers has moved to digital channels such as mobile and internet; interfaced with face-to-face interactions (Agency banking). All this means that customers can now access the bank any time, anywhere, via any channel.

Joanne Talma

Mr. CEO, What is your take on blockchain technology? How do you see this affecting the banking sector in some years to come?

Festus Rotich

Good Morning Dr.Thuku, Pesalink won the Best Banking Initiative category in the Emerging Payments Awards in London last night. What mechanisms have/will Kenyan banks/KBA put in place to ensure that customers fully embrace this technology?

Margaret Ngenye

Apart from PesaPap, are there any other digital innovations we should expect from FBL?

Julie Kinyua

Hello Dr. Thuku, in line with Cynthia's question, there's a new development in terms of Robo advisers; Is this something that you hope to incorporate into your business model?

JEREMIAH NDALANA

Dr.Thuku. Does Family bank feel the impact of high technological changes and need to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements in the market with not making enough return on investment?

Nakhanu ___

Hello Dr.Thuku, what have been your biggest achievements and how do you keep yourself motivated?

NELSON NJOROGE

Hello Dr. Thuku, What are the process of opening a business account with FBL?

David Thuku

Thanks Jeremiah ... banks will work to stay competitive in a crowded marketplace by giving solutions to tensions that their customers face. So its less about the technology being deployed and more about meeting the customers' needs. There will always be challenges to solve...and that's what keeps us continuously innovating.

Chris Muiruri

Hi Dr. Thuku, we have seen several local banks providing open platforms for software developers to communicate & interact with their banking sevices. Does Family Bank have plans of providing end-points & API for software developers in the future?

Edwin Kuria

Morning Dr. Thuku. With the emergence of Safaricom M-pesa Tap to Pay, what kind of innovations are you gearing up to keep up with competition?

David Thuku

Allen, this is a very insightful question...revolutionalization of society is a topical subject and digital transformation sits right at the center of this narrative. Every industry, as you rightfully put, is affected by digital transformation. The reality is that boundaries -- between industries, between customer segments, etc -- are fast disappearing, as the focus gets to understanding the customer and what they need. Whoever understands, regardless of the industry, will continue to remain relevant.

David Thuku

With regard to the regulatory environment, the focus then becomes ensuring that the needs of the customers are being met in the best way. A good example of how the regulator can support innovation is here in Kenya...with the Central Bank of Kenya supporting digital transformation in the payments ecosystem, most recently via PesaLink.

NELSON NJOROGE

Hello Dr. Thuku, What do you think are the challenges of online payments and how do you as FBL cub them?

Peter Kairu

I watched your ad for the rainbow a few years back and that is part of the reason why I joined family bank. Should we be expecting more ads from your bank?

David Thuku

Thank you Becky. Traditionally, footfall meant people physically walking into a physical branch. But with digital transformation, footfall has continued to grow but more of it is going to other channels instead of the physical branch. So the footfall in this context is digital; and to mobile App, internet, smart ATMs, Agents, etc. This is a good thing because it creates convenience for the customer; and banks are able to serve more customers.

Alexander Ingila

Hallo Dr Thuku. As a CEO , has cyber security been a challenge to your organization? what steps has the organization taken to sensitize your resources internally on the same?

Sarah Keino

Hallo David, With increased digital innovation, there is less interaction with the customer. How do you foresee banks transforming their customer service standards?

David Thuku

Joanne, thank you very much for raising what is actually a buzzword in the industry today. Lets start by demystifying blockchain technology. Simply put, blockchain is continually growing list of records which are linked and secured by encryption. The key thing it does is to enable sharing of information or records in a secure format. In other words its like a decentralised ledger. Blockchain is actually not a new concept per se because it is really record keeping which has been part and parcel of banking since the industry was formed.

David Thuku

Record keeping in banking was manual initially, it evolved to centralised computer records by individual institutions; and what blockchain is doing is moving that steps further where the records are not owned by any single entity ... they are owned by everybody. With blockchain technology, these records can be accessed, and can be used by virtually anybody, anywhere, anytime. So this is pushing the concept of universality steps further.

Joanne Talma

Does FBL intend to apply the blockchain tech?

David Thuku

Festus we are excited to have won last night in the Emerging Payments Awards. This recognition is yet another first that Kenya is bring to the global stage. This win is not just for the banking fraternity...it is a win for Kenyan people who have time and again shown that Kenyans are very entrepreneurial and we have taken on the spirit of innovation. Digital transformation is now starting from Kenya outwards to the world -- as opposed to the previous when it was coming from outward in. We have so far seen many success over the last decade that has raised Kenya's global profile as a 'hotbed' of digital innovation.

David Thuku

Julie your question about robotics is very "digital"! Thank you for raising it.

Yohana Mdoe

I think what Joanne means to say is - does FBL intend to start using Bitcoin, Dogecoin, etc? Like how a South African bank (I've forgotten which one) recently started doing.

Yohana Mdoe

If you're going to implement robo-advisers, could you specify a help-line for those who want to speak to humans?

David Thuku

Robo advisers is part of the evolution of self service tools. The self service tools are generally being used to put the power in the hands of the customer...so that customers can do what they want, when they want to.

WALLACE LAGAT

Good Morning Dr. Thuku , with digital innovation banks and customers are relying on alternative channels but cheque remain the most common payment instrument for bulk Payment or transfer which require physical presentation accompanied by instruction letter, are there plans to Automate this place ? 2.What is te industry doing to embrace local Innovation 3. what is the industry take on E-wallets like Bitcoin?

David Thuku

Nelson thanks for wanting to bank with us...email us at customerservice@familybank.co.ke and we will assist.

Abraham Kiplangat Mutai

Just joined the chay

David Thuku

Chris ... yes we have an innovation team...contact info@familybank.co.ke...we would love to hear your ideas.

Abraham Kiplangat Mutai

David, with the latest social media craze, has family bank embraced robust social media strategies? I can share...

Alexander Ingila

I am sorry I joined in late and time may not be on our side. I have twice written to your organization on the cyber security front where we come in as experts in cyber security training but no response has come from your office especially at this time when CBK requires all banks to file strategy and policy formulation plans by end of November 2017. It make us feel you are really not keen on protecting your organization from online and cyber attacks. I am Country Manager of HackerU Ltd - Leading Cyber security academy in the world. My email is alex@hackerukenya.co.ke. We could discuss this further.

David Thuku

Edwin, I raised the point earlier that customer needs are evolving and therefore there will always be room for competition to meet their needs.

David Thuku

Alexander the point you raise about cyber security is very important because as the industry innovates, criminals are also innovating. The good thing is that the industry and the regulators and all the other entities are aligned in ensuring that we keep ahead of these criminals. So you will continue to see banks upgrading their systems; and incorporating tighter cyber security controls. At industry level you will also see industry solutions, for example the recent Chip and Pin technology which has practically eradicated the card skimming fraud. The regulator has also taken up cyber security as a number one priority for the industry.

Alexander Ingila

Thank you for your response.

David Thuku

Sarah...thats a very interesting point...whilst there are services that customers can do on their own; there is still human interaction; however now its via the digital channels (telephone contact centers; video chats; emails; Whats App, Facebook, etc)...self service is just one of the options that a customer can choose; ultimately, there will always be human interaction.

David Thuku

Joanne our innovation team is exploring blockchain.

Chat Admin

Time is running out. We will soon be wrapping up the chat

Sam Kerosi

Thank You. Excellent Session

David Thuku

Yohana, Joanne actually raised a correct point...Bitcoin is just one use of Blockchain technology...and we are looking at all the ways we can use blockchain tech.

Yohana Mdoe

Oh, OK. Understood.

David Thuku

Wallace thanks for your question about cheques ... PesaLink is one of the ways we are innovating small to large payments. it is an instant transfer of funds from as low as 100 to as much as 999,999.

Alexander Ingila

I think the human resource bit should be key in the war on cyber security. We offer that side of skilling for general staff, Core IT staff, Core Cyber security units, senior management and the Executive. All these members of staff have access to the company intranet through their Mobile devices.

David Thuku

Abraham our team here at Family Bank definitely recognizes the importance of social media as one of the platforms that have emerged as one of the ways through which our customers want to engage with us.

David Thuku

Derrick we have an innovation team thats working on some exciting new products and innovations...stay tuned!

David Thuku

Nakhanu thanks for your question...how do I stay motivated? When we are able to meet the needs of our customers, this motivates me to continue exploring how to do even more. I stay personally motivated by connecting with nature.

David Thuku

Peter the Rainbow Ad on transforming lives was fun! We will continue to do more of such.

David Thuku

Nelson I see your question on the challenges of online payments...I think the key challenge is cyber fraud...and we are constantly working on this.

David Thuku

As we close...I would like to thank you all very much for the engaging discussion today...the topic is wide and our objective today was to demystify digital innovation and I hope we have done that to some degree.

David Thuku

It is an ongoing and evolving discussion and lets continue to engage in it using the various channels. The future looks very exciting and beyond our current imagination...and that's what makes the topic of digital innovation in banking very exciting. Lets all keep current on the subject.

David Thuku

So thank you for spending this past hour with me...I wish you all "digital" weekend! God bless you.

Sarah Keino

thank you too

Chat Admin

Ladies and Gentlemen, we’d like to take this opportunity to thank Dr. Thuku for being with us today and for his insights on the topic of Digital Innovation and Banking

Peter Kairu

Thank you for your response

David Thuku

Karibu sana Sarah

David Thuku

You are very welcome Peter

Chat Admin

We would also like to thank you all so much for your questions and comments. Your contributions have made this session a success

Becky Genga

Thanks for your time and responses. Loved the lesson on blockchain technoogy. All the best to Family Bank.

Alexander Ingila

ahsante sana :-)

David Thuku

Asante Becky

Chat Admin

Kindly note you can get copies of the transcript, podcasts and other information relating past chats in the Archive page of chat.kba.co.ke website

Chat Admin

@Alexander Ingila, thank you for logging on but please note that this is not a platform for marketing and personal business promotion

nuru mugambi

Awesome session...thanks David

Chat Admin

We welcome you to join us on KTN Kenya Facebook page for a live session where Dr. Thuku will be continuing the discussion on today's topic

Chat Admin

Do log on!

Chat Admin

The chat room closes in the next 10 minutes. We thank you once more for joining us and wish you a wonderful Friday and weekend ahead!

Terms and Conditions

If you utilize the CEO Chat Registration Form you are agreeing to comply with
and be bound by the following terms and conditions of use, which together
with our privacy policy govern Kenya Bankers Association relationship with
you in relation to KBA website(s).

The term “Kenya Bankers Association”, “KBA” or “us” or “we” refers to the
owner of the website whose registered office is P.O. Box 73100 - 00200, Nairobi,
Kenya. Our Association is registered in the Republic of Kenya. The term “you”
refers to the user or viewer of our website.

The use of this website is subject to the following terms of use:

The content of the pages of this website is for your general information and use only. It is subject to change without notice.

Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of
the information and materials found or offered on this website for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude
liability for any such inaccuracies or errors to the fullest extent permitted by law.

Your use of any information or materials on this website, including online conversations or chat sessions or visual, video and audio
presentations, is entirely at your own risk, for which we shall not be liable. It shall be your own responsibility to ensure that any products,
services or information available through this website meets your specific requirements.

Participants of online forums hosted by and endorsed by KBA must be
a minimum age of 18 years. By acknowledging this age requirement
via registration form you certify that you are at least 18 years old.

This website may contain material which is owned by or licensed to
KBA. This material includes, but is not limited to, the design, layout, look,
appearance and graphics. Reproduction is prohibited other than in
accordance with the copyright notice, which forms part of these terms
and conditions.

All trademarks reproduced in this website, which are not the property of, or licensed to the operator, are acknowledged on the website.

Unauthorized use of this website may give to a claim for damages and/or be a criminal offence.

From time to time this website may also include links to other websites.These links are provided for your convenience to provide further
information. They do not signify that we endorse the website(s). We have no responsibility for the content of the linked website(s).

You may not create a link to this website from another website or document without Kenya Bankers Association’s prior written consent.

Your use of this website and any dispute arising out of such use of the website is subject to the laws of Kenya.

Copyright and Trademarks

“my chat with a bank CEO”, “my CEO Chat”, “my 15min chat with a bank CEO”, “If you had 15mins with a bank CEO, what would you say or ask?”, “If
you had 15mins with a bank CEO, what would you talk about?”, “my 15min chat with a bank CEO”, “my bank CEO chat”, “myCEO chat” are all registered trademarks of the Kenya Bankers Association.